HemaCare Reports Full Year 2018 Results
LOS ANGELES--(BUSINESS WIRE)-- HemaCare Corporation (OTCMKTS: HEMA), a global leader and trusted brand in the customization of human-derived biological products and services for biomedical research, drug discovery, and cellular therapy process development, today announced operational highlights and financial results for the year ended December 31, 2018.
2018 Operational Highlights
- HemaCare celebrated its 40th anniversary since being founded in 1978.
- Significant revenue growth attributable to existing and new cell therapy and global customers and key distributors.
- Product and services revenue growth was primarily due to customized cell isolation, processing and cryopreservation, and specialized collections of leukopaks and mobilized peripheral blood.
- In November 2018, the company moved its global headquarters to Northridge, California. In this new facility, HemaCare doubled its donor collection capacity and on-site cell processing capabilities. Located at the 44-acre Harman Campus, in the heart of the San Fernando Valley, the 40,000-square-foot newly renovated facility reflects the company’s accelerated growth. This new location also expands HemaCare’s onsite GMP capabilities beyond collection to include four clean rooms enabling GMP cell processing, isolation, cryopreservation, and biobanking services to further support the development efforts of novel cellular therapies.
- In November 2018, HemaCare announced its involvement as a provider of leukapheresis process development material for 100% of the current FDA-approved immunocellular therapies, Kymriah® (Novartis; Switzerland), Yescarta® (Kite, a Gilead Company; CA, USA), and PROVENGE® (sipuleucel-T) (Dendreon Pharmaceuticals LLC; CA, USA). During the development process, HemaCare worked collaboratively with each company to source healthy donors per project requirements. All leukapheresis material was collected and shipped following stringent standards as developed by the AABB and accepted by the FDA.
- On November 26, 2018, collaboration discussions resulted in a strategic partnership with Charles River Laboratories subsidiary, Vital River, to provide the scientific community in China with direct access to healthy and disease-state human primary cells.
- On December 20, 2018, OneBlood exercised its option to make the third tranche investment of $1.25 million in shares of HemaCare’s common stock at $3.44 per share.
- For the year ended December 31, 2018, HemaCare reported total revenues of $28.5 million, compared to $20.2 million for the year ended December 31, 2017, representing an increase of $8.3 million, or approximately 41%. The increase in revenues was primarily derived from an increase in customer growth and product mix improvement.
- Gross profit for the year ended December 31, 2018 was $15.7 million, or 55% of net revenues, compared to $10.6 million, or 53% of net revenues, for the year ended December 31, 2017.
- For the year ended December 31, 2018, HemaCare’s income before tax benefit and expenses increased to $6.2 million, as compared to $3.4 million for the year ended December 31, 2017, representing an increase of $2.8 million or approximately 82%.
- HemaCare’s net income for the year ended December 31, 2018 increased to $4.5 million, as compared to $4.4 million for the year ended December 31, 2017, which includes a one-time tax benefit of $1 million.
- Capital expenditures increased by $6.2 million, net of tenant improvement allowance, at December 31, 2018 compared to $0.7 million at December 31, 2017, primarily due to the move to the new state-of-the-art facility.
- As of December 31, 2018, HemaCare had $10.2 million in cash and cash equivalents compared to $9.3 million in cash at December 31, 2017.
For complete audited December 31, 2018 Financial Statements, please click here.
Pete van der Wal, HemaCare’s President and Chief Executive Officer, stated: “2018 was a transformative year for HemaCare. We celebrated the company’s 40th anniversary, successfully relocated the company to a state-of-the-art much larger facility, while simultaneously exceeding our financial growth targets. The multi-year sustained growth in revenue and earnings continues to validate HemaCare’s strategic focus on providing clients with superior purity, viability and functionality of the human biological cells they purchase from HemaCare.”
HemaCare is a global leader in the customization of human-derived biological products and services for biomedical research, drug discovery and cellular therapy process development. The company’s network of FDA-registered, GMP/GTP-compliant collection centers ensure fresh donor material is available to customers and for use within HemaCare’s isolation laboratory. Human biological material including peripheral blood, bone marrow, and cord blood is isolated into various primary cells types for fresh and frozen distribution. For over 40 years, HemaCare has developed an extensive registry of repeat donors and provides human-derived primary blood cells and tissues for biomedical and drug discovery research and cell therapy clinical trials, and supports commercialization with apheresis collections, directly enabling customers to advance both autologous and allogeneic cellular therapies.
For more information please visit www.hemacare.com.
Forward Looking Statements
This press release contains forward-looking statements. The words “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “plan,” “expect” and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements. Forward-looking statements in this press release address plans for facility utilization, among other subjects. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: the ability of our donors to provide sufficient quality source material; our ability and the ability of our suppliers to maintain compliance with cGMP and other regulatory obligations; the results of regulatory inspections; adverse developments in our customer-base or the markets we serve; results of the Company’s collaboration with strategic partners; adverse changes in regulatory, social and political conditions affecting our industry; our ability to timely and effectively implement 2019 staffing, operations, and product menu changes; our ability to manage growth; and general market, economic and business conditions. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.
|Cash and cash equivalents||$||10,274,000||$||9,251,000|
|Accounts receivable, net||4,776,000||2,959,000|
|Product inventories and supplies, net||3,299,000||2,520,000|
|Other current assets||141,000||-|
|TOTAL CURRENT ASSETS||18,729,000||14,892,000|
|Property and equipment, net||9,502,000||1,358,000|
|Deferred income taxes||-||1,128,000|
|TOTAL NONCURRENT ASSETS||9,502,000||2,556,000|
LIABILITIES AND SHAREHOLDERS' EQUITY
|Accrued payroll and payroll taxes||1,979,000||1,658,000|
|Other accrued expenses||123,000||210,000|
|Current portion of deferred rent||-||9,000|
|Current portion of capital lease obligations||201,000||99,000|
|TOTAL CURRENT LIABILITIES||4,487,000||2,658,000|
|Deferred rent, net of current portion||2,409,000||-|
|Deferred income taxes||35,000||-|
|Long-term portion of capital lease obligations||176,000||93,000|
|TOTAL LONG-TERM LIABILITIES||2,620,000||93,000|
COMMITMENTS AND CONTINGENCIES
Common stock, no par, 40,000,000 shares authorized, 12,860,956 and 12,011,545 shares issued and outstanding, respectively
|TOTAL SHAREHOLDERS' EQUITY||21,124,000||14,697,000|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$||28,231,000||$||17,448,000|
|STATEMENTS OF INCOME|
|FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017|
|COST OF REVENUE||12,840,000||9,594,000|
|GENERAL AND ADMINISTRATIVE EXPENSES||9,434,000||7,195,000|
|INCOME BEFORE INCOME TAX BENEFIT (EXPENSE)||6,232,000||3,423,000|
|Income tax benefit (expense)||(1,716,000||)||1,009,000|
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Source: HemaCare Corporation